Chacha Food advances tenth employee stock ownership plan

Chacha Food's tenth Employee Stock Ownership Plan (ESOP) has advanced following its approval by the employee representative assembly on November 12, 2025, and the sixth board of directors' twenty-second meeting on November 14, 2025. The plan, which aims to enhance employee motivation and retain talent, is awaiting approval from the shareholders' meeting. Shanghai Tongli Law Firm has issued a legal opinion, affirming the plan's compliance with relevant laws and regulations.

The ESOP allows participating employees to invest up to CNY 100 million, with self-raised funds not exceeding CNY 60 million. The plan maintains a financing leverage ratio of up to 1:0.67, with a maximum financing of CNY 40 million, aligning with regulatory requirements for asset management. The ESOP has a duration of 36 months, with a 12-month lock-up period for the acquired shares, sourced from company buybacks and secondary market purchases.

The total shares allocated under the ESOP will not exceed 10% of the company's total share capital, with no single participant holding more than 1%. The plan explicitly states that participants waive voting rights associated with their ESOP shares, ensuring no impact on shareholder resolutions. Related information has been disclosed on the Shenzhen Stock Exchange website as of November 15, 2025.